On February 23, Padget Electronics signed a contract manufacturing agreement with Compal to produce mobile phones for Compal and its designated customers, as stated by Dixon Technologies in an exchange filing. The production facility for Padget Electronics is located in Noida.
Compal specialises in manufacturing PCs, smart devices, data centre equipment, and LCD products.
Earlier in the day, Dixon told CNBC-TV18 that it expects its margins to improve by 100-120 basis points over the next 24-28 months, driven by increased mobile components manufacturing.
The company plans to boost value addition in its mobile segment from the current 17-18% to 35-36% over the next two to three years.
Dixon has a revenue target of ₹35,000-40,000 crore for 2024-25 (FY25).
Saurabh Gupta, CFO of Dixon Technologies, said, “We have done, broadly ₹18,600 crore in the first half. I feel the second half should be better than the first half. The Q1 )April-June quarter) moved slightly slower for us. Lot of customer ramp up happened during Q2 (July-September quarter) so the second half should be better than the first half.”
By 2025-26, the company expects the mobile segment’s contribution to business to reduce to 60-65% from 70% now, driven by the strength in ordering momentum in the telecom and IT hardware segments.
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